The cost of motor vehicle insurance rose 22.6% over the last year, according to the latest Consumer Price Index summary from the U.S. Bureau of Labor Statistics. In comparison, the overall rate of inflation for the last year was 3.4%.
Vox reports that rising insurance costs disproportionately impact low-income individuals, especially those with poor credit or residing in high-crime areas, who often pay above the average for car insurance.
Mark Fitzpatrick from Moneygeek reports that California is among the priciest states for car insurance, with average premiums exceeding the national average of $1,343. Specific data shows that California drivers with a speeding ticket pay about $1,944 annually, those involved in accidents pay approximately $2,205 each year, and drivers with a DUI face the highest rates at an average of $3,375 annually.
An increasing number of lawsuits is contributing to high costs for California consumers, the Northern California Record previously reported. Excessive litigation and massive payouts are driving up insurance costs, piling on to the state’s high cost of living. California also has the highest poverty rate in the nation.